Margin Calls on Loans – ANZ

Hi

Watch out if you have a line of credit type loan.

ANZ have just sent out a letter to all  those with their LOC, the Equity Manager and th Home Equity Loan. They have changed the terms of the loan.

The new terms include:

Equity Manager and Home Equity Loan:
Clauses introducing the right to:
– reduce or cancel a credit limit at any time; and
– demand payment of any outstanding balance.

ANZ may also order a valuation on your property at its discretion:
"The introduction of this clause allows ANZ to charge for valuations that it orders. ANZ may order a valuation on a security property if it has reason to believe that the property is no longer of sufficient value to secure the loan(s) it has outstanding against that property. An example of where ANZ may do this is if it finds a security property has been damaged and is not insured, or where a complex property valuation is required."

Interesting!